Branch Wise Packing Credit – (BIPC)
Export Credit Insurance for Bank
Export Credit Insurance For Banks Branch Wise Packing Credit (ECIB-BIPC)
A branch of a bank or a financial institution authorized to deal in foreign exchange can obtain the Branch-wise Packing Credit Cover in respect of one or more of its exporter clients who has been classified as a standard asset and whose Credit Rating is acceptable to ECGC.
Period Of Cover:
All packing credit advances as per RBI guidelines
Against losses that may be incurred in extending packing credit advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover:
12 paise per Rs.100 p.m. on the highest amount outstanding on any day during the month.
66-2/3% of the aggregate of Packing Credit Limits of the accounts being covered.
Important Obligation Of The Bank:
Monthly declaration of advances granted and payment of premium before the end of the month. Approval of the Corporation for extension of due date beyond 360 days from due date to be obtained. Default to be reported within 4 months from due date or extended due date of advances, if not recovered, filing of claim within 6 months of the Report of Default. Recovery action after payment of claim and sharing of recovery.
Submission of a single proposal and a single monthly declaration for all the accounts that are being covered. Bank Branch can include additional accounts during the cover period with due approval of the Corporation. Exclusion of account(s) permitted at the time of renewal only. No enhancement in limit without approval of ECGC. Reduction in premium rate to 10 paise could be allowed provided branch remits a premium of not less than Rs. 50,000 during a month under the cover.
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